Lilly bought his first mobile home park for $450K with 19% down
Jefferson Lilly · What if You Could Invest $100k Once, Make $20k/Year Forever? EP 251: Jefferson Lilly · Jun 2, 2016 · at 4:36
Investor Jefferson Lilly describes the financing structure and purchase price of his first mobile home park acquisition in Oklahoma.
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“Oh, it was about 450,000, and I got a Bank to lend me 81% of that, so I only had to put down 19%.”
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More from Jefferson Lilly
Lilly: Mobile home park investors should earn at least 20% cash-on-cash returns
“Basically in this business, if you're not earning 20% on your money, you're doing something radically wrong.”
Lilly: Park Street Partners has mobile home deals generating over 40% cash-on-cash
“We've got a couple deals that are doing over 40% cash on cash.”
Lilly: Value mobile home parks by multiplying monthly lot rent by 84
“Another way to look at it, if there's funny business going on with the P&L, just look at what the park earns per month, and multiply by about 84.”
Lilly: Mobile home land has 30% expense ratio versus 70% for homes
“And then in this business, the land business, probably you're going to have, let's just say, 30% in expenses. Being in the house business is the inverse. It's more like 70% expenses.”